Research On The Construction Of Accounting System In China 's Foundation

In recent ten years, foundations developed rapidly along with our economy while it showed plenty of financial problems as well. As the exposures by media lead to reliance crisis of foundations, the growth of its whole industry was affected. In China, the accounting work with foundation should follow ?accounting principle for non-governmental NPO. This principle was released by Ministry of finance in 2004. However, the principle was outdated and couldn?t meet the need of those stakeholders. The basic feature of foundation and its operating characteristic make it different from other NPO. So it is important to build a foundation accounting principle with Chinese characteristics.Beginning with the definition of foundation, this paper explain the basic feature of foundation and its operating characteristic, and then summery its influence for foundation accounting; it analyses the current accounting system for foundation and point out the problems that current principle are not suitable for the foundation and that there?s inconsistency within current requirements, in order to explain the necessity of building a foundation accounting principle; it talks about the foundation accounting principle in both United States and United Kingdom and how to take their advantage; finally the paper introduce the content of the foundation accounting principle, which include the scope, the objectives, accounting assumption; accounting basis; accounting elements and financial reports.The innovation of this paper is that it?s the first time the foundation accounting principle is built which is special designed for the Chinese foundation and to help its development. To meet up the need of information user and foundation operation characteristic, the principle set up double entities assumption, going and period assumption, fix period and non-fix period, monetary unit and non-monetary unit assumption, and also discuss about the use of modified accrual basis as well as build up a system for both foundation integrate financial reports and separate financial reports...